Wiregrass Investment Management LLC Reduces Stock Holdings in Cummins Inc. $CMI

Key Points

• Wiregrass Investment Management reduced its Cummins stake by 34.7% in the first quarter, selling 1,594 shares and leaving it with 2,994 shares valued at about $1.61 million.
• Cummins reported strong quarterly results, posting EPS of $6.15 versus estimates of $5.63 and revenue of $8.40 billion, while also increasing its quarterly dividend to $2.20 per share from $2.00.
• Wall Street remains bullish on the stock, with 11 buy ratings and an average consensus price target of $740.07, even as some company insiders have recently sold shares.

Wiregrass Investment Management LLC cut its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 34.7% in the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 2,994 shares of the company's stock after selling 1,594 shares during the quarter. Cummins comprises 1.3% of Wiregrass Investment Management LLC's holdings, making the stock its 19th largest position. Wiregrass Investment Management LLC's holdings in Cummins were worth $1,611,000 as of its most recent SEC filing.

A number of other large investors have also modified their holdings of CMI. Thompson Investment Management Inc. acquired a new stake in Cummins in the 4th quarter worth approximately $26,000. Activest Wealth Management increased its stake in Cummins by 537.5% during the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after purchasing an additional 43 shares in the last quarter. Cedar Mountain Advisors LLC increased its stake in Cummins by 1,500.0% during the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after purchasing an additional 45 shares in the last quarter. Wellington Shields Capital Management LLC purchased a new position in shares of Cummins in the fourth quarter worth $27,000. Finally, Key Financial Inc lifted its stake in shares of Cummins by 62.5% during the first quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after buying an additional 20 shares during the period. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Stock Performance

NYSE CMI opened at $659.94 on Wednesday. The firm has a market capitalization of $91.07 billion, a P/E ratio of 34.25, a PEG ratio of 1.56 and a beta of 1.22. The stock has a 50-day simple moving average of $674.90 and a two-hundred day simple moving average of $616.91. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. Cummins Inc. has a fifty-two week low of $344.02 and a fifty-two week high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. The firm had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company's revenue was up 2.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $5.96 earnings per share. On average, equities analysts forecast that Cummins Inc. will post 29.39 earnings per share for the current year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be given a $2.20 dividend. The ex-dividend date is Friday, August 21st. This represents a $8.80 annualized dividend and a yield of 1.3%. This is a boost from Cummins's previous quarterly dividend of $2.00. Cummins's payout ratio is currently 41.52%.

Insider Buying and Selling at Cummins

In related news, VP Donald G. Jackson sold 730 shares of the business's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $710.92, for a total value of $518,971.60. Following the completion of the transaction, the vice president directly owned 8,316 shares in the company, valued at $5,912,010.72. The trade was a 8.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Nathan R. Stoner sold 607 shares of the firm's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $694.06, for a total transaction of $421,294.42. Following the sale, the vice president owned 9,447 shares in the company, valued at approximately $6,556,784.82. This represents a 6.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on CMI shares. Barclays boosted their price objective on shares of Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Weiss Ratings cut Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, May 6th. Citigroup boosted their price target on Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Morgan Stanley increased their price objective on Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Finally, Truist Financial raised their price objective on Cummins from $815.00 to $901.00 and gave the stock a "buy" rating in a research note on Thursday, July 2nd. Eleven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $740.07.

Cummins Company Profile

Cummins Inc NYSE: CMI is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world's leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company's product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.

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